"It's clear from our research that many landlords are approaching the Renters' Rights Act with a degree of uncertainty, and that's entirely understandable given the scale of change being introduced"
- Sim Sekhon - LegalforLandlords
New research from LegalforLandlords finds a quarter of landlords plan to leave the market as a result of the Renters' Rights Act, with 60% of those staying set to apply significantly tougher tenant vetting.
A quarter of landlords plan to sell their properties and exit the private rented sector as a result of the Renters' Rights Act, while 60% of those who remain intend to apply significantly stricter criteria when vetting prospective tenants, according to new research from LegalforLandlords.
The firm surveyed more than 900 UK landlords to understand how the legislation is reshaping tenant screening practices and how landlords are managing what many perceive as an increased level of risk. The abolition of Section 21 no-fault evictions and the replacement of Assured Shorthold Tenancies with Assured Periodic Tenancies sit at the heart of those concerns, as both changes extend tenants' ability to remain in a property while reducing landlords' options for regaining possession without valid grounds.
Some 77% of landlords say they are familiar with the Act's provisions, and 63% believe it will increase their exposure to risk. The abolition of Section 21 is the single biggest concern for 43% of respondents, while 20% are most worried about the end of Assured Shorthold Tenancies.
Tighter vetting across the board
In response, 50% of landlords plan to apply more stringent screening to tenant applications, with 25% intending to do so significantly. Greater scrutiny of income and affordability checks is the priority for 22%, while 19% plan to lean more heavily on references from previous landlords.
Credit history checks and employment verification are each being stepped up by 16% of respondents. Over half (53%) say they are now more likely to insist on a rent guarantor.
The cumulative effect is a more selective rental market. Some 60% of landlords say they will be stricter about which tenants they accept, and the same proportion admit they are now less likely to let to higher-risk applicants, including those on lower incomes or with limited rental histories.
A quarter are leaving altogether
While 63% say they will continue renting with greater vetting and scrutiny in place, 24% are explicit about their intention to sell up entirely. A further 13% plan to reduce the size of their portfolio.
"It's clear from our research that many landlords are approaching the Renters' Rights Act with a degree of uncertainty, and that's entirely understandable given the scale of change being introduced," said Sim Sekhon, group CEO at LegalforLandlords.
"For some, particularly those who have relied on more traditional routes to regain possession, this represents a significant shift in how the sector operates.
He added, "However, it's important to keep that concern in perspective. The reforms are not about removing landlords' rights, but reshaping them. Landlords who carry out thorough tenant vetting, maintain high-quality properties and take a professional approach to management are unlikely to find themselves disadvantaged. Crucially, there are still clear and workable routes to regain possession, whether in response to problematic tenant behaviour or where a landlord needs to sell or move back into a property."
"What is more concerning is the proportion of landlords considering leaving the sector altogether. A reduction in supply at that scale has clear implications for the wider market, particularly at a time when demand for rental homes remains consistently strong. Inevitably, that imbalance risks pushing rents upward and making it harder for tenants to access suitable accommodation. At the same time, it does mean that landlords who remain in the sector may benefit from reduced competition and sustained demand for well-managed rental homes."
Sekhon concluded, "As the industry adapts, the focus should be on clarity, education and confidence. With the right understanding of the new framework, landlords can continue to operate successfully within it, while contributing to a more stable and sustainable rental market overall."
